Megatrends

The most influential Megatrends set to shape the world through 2030, identified by Euromonitor International, help businesses better anticipate market developments and lead change for their industries.

PROSPECTS

Internet retailing continues to see dynamic double-digit current value growth in Azerbaijan in 2018 as a result of the country’s relatively stable currency and improved macroeconomic stability, which has led to a rise in disposable income. Busier lifestyles have also supported the growth of internet retailing, with consumers switching to online purchases in order to save time on shopping.

Local authorities plan to impose stricter controls on internet retailing

During the review period, due to the rapid growth of internet retailing, the government started actively working on monitoring and controlling internet transactions. As a result, during 2017 and 2018, several legal acts were issued which increased import taxes for certain products.

Sales of grocery products remain limited through internet retailing

Internet retailing continues to be mainly preferred by consumers which wish to buy non-grocery products. Store-based retailing remains the main channel for grocery purchases, since grocery products require more delicate storage and transportation and have a shorter shelf life than non-grocery products.

COMPETITIVE LANDSCAPE

3rd Party Merchants lead internet retailing in Azerbaijan through aliexpress.com

In 2018, aliexpress.com has continued to lead internet retailing in Azerbaijan.

Internet retailing being led by international sites

Internet retailing in Azerbaijan is represented by both local and international sites, although the share of local players remains negligible in 2018 due to several reasons. Firstly, there is a lack of internet retailing infrastructure in the country as well as low trust from local consumers which is limiting the growth of local players present in internet retailing.

New products on the global arena support sales through international retail sites

International sites remain important in Azerbaijan in terms of new product offerings, especially for people which cannot locate the products they want on the local market and who often search for them through the internet. Also, international sites typically offer these new products at more competitive prices, since local retailers often import these products and then try to maximise their profit by claiming scarcity of the products on the local market.

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